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Local News

Connecticut Bond Outlook “Negative”

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(Mark Lennihan/AP Photo)

(Mark Lennihan/AP Photo)

HARTFORD, Conn. (AP) _ Moody’s Investors Service has cut its
outlook on Connecticut’s general obligation bond rating to negative
from stable, saying the state’s prospects are slim to replenish
depleted reserves.

The rating service said Tuesday that Connecticut’s costs to
service debt are high relative to its budget. It said the state
pension and other post- employment benefits relative to the budget
are among the highest in the United States.

Moody’s said it could eventually downgrade Connecticut’s rating
unless the state has a plan to make improvements in pension funding
and reduces costs.

It said Connecticut has about $14 billion in bonds.

The New York rating service affirmed Connecticut’s Aa2 rating,
saying it expects revenue to improve as the state emerges from the
recession.

Gov. Dannel P. Malloy’s budget chief, Benjamin Barnes, did not
immediately comment.

(Copyright 2011 by The Associated Press.  All Rights Reserved.)

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